DECD Commissioner Stops at Three Rivers to Explain New Small Business ProgramsDocument Transcript
DECD Commissioner VisitsThree Rivers to Explain New Small Business ProgramsDecember 29, 2011 - Three Rivers Community College recently hosted over 100 Norwich-areabusinessmen and women who came to hear Connecticut’s economic development commissioner,Catherine Smith, explain new state programs created to help small businesses and create jobs.In its October 2011 special legislative session, the Connecticut legislature enacted a “jobs bill,” whichincludes a number of financial and tax incentive programs to help small businesses.Smith’s stop at Three Rivers Community College was one of more than a dozen informational sessionsheld across the state to let businesses know what the new programs have to offer.Although the 98-page jobs bill creates a number of tools designed to help create and retain jobs, acenterpiece of the bill is the Small Business Express Program, which offers loans and grants toConnecticut’s small business to spur job creation and growth. The legislature authorized $120 million infunding for the Small Business Express Program for 2012 and 2013. The program includes low-interestloans, deferrable and forgivable loans, and matching grants to Connecticut-based small businesses andsmall manufacturers.What’s available? Matching grants from $10,000 to $100,000 and loans for $10,000 to $250,000, at amaximum of 4% interest for loan periods up to five years, are available for employee training, workingcapital, machinery and equipment purchases, construction improvements, or for relocation withinConnecticut. Certain loans may be forgiven or deferred based on the borrower’s actual job creation.Eligible small businesses may obtain loans and grants in combination, whether from the Small BusinessExpress Program or through other municipal, state or federal programs.Who may apply? Small businesses employing 50 or fewer employees are eligible for the SmallBusiness Express Program. Applicants must also: be based in and operate in Connecticut; have beenregistered to do business in Connecticut for at least 12 months; be current on all state and local taxes;and be in good standing with all state agencies. In awarding grants or loans, DECD must give priority toConnecticut’s “economic base businesses,” which include precision manufacturing, business services,green and sustainable technology, bioscience, and information technology businesses.For more information on the Small Business Express Program, see the table and links to additionalresources below.Other resources: CT Department of Community & Economic Development (DECD): www.decd.org DECD Small Business Express Program and application: http://1.usa.gov/uic6wr An Act Promoting Economic Growth and Job Creation in the State (Public Act 2011-1, October Spec. Sess.) - bill text at http://1.usa.gov/vlOyEA; OLR Bill Analysis at http://1.usa.gov/rLsIeB DECD Presentation on Jobs Bill: http://www.ct.gov/ecd/lib/ecd/csra_road_tour_(jw).ppt DECD Jobs Bill Webinars (Jan 18, 2012 and Jan 19, 2012) - http://1.usa.gov/uxFlhi Norwich Community Development Corp (NCDC), for Norwich-based businesses, at www.askncdc.com.
Connecticut DECD Small Business Express Program Public Act 11-1, Oct. Special Session Forgivable Loans Revolving Loan (Job Creation Incentive) Matching GrantOverview Loans to support small Deferrable or forgivable Matching grants to provide business growth loans for borrowers that working capital increase and maintain jobs for at least 12 consecutive months, to support hiringWho may apply Businesses with 50 or fewer employees that: Are based in and operate in CT, and Have been registered to do business in CT for at least 12 months, and Are current on all state and local taxes, and are In good standing with all state agencies.Terms and conditions $10,000-$100,000 $10,000 to $250,000 $10,000 to $100,000 Up to 4% interest forgivable loans grants Maximum 5-year term Commissioner may Business must match DECD determines loan defer loan payments state grant terms, conditions, and and forgive all or part of DECD prioritizes on collateral requirements loan based on the likelihood of applicant prioritizing job growth borrower’s job creation maintaining job growth and retention DECD determines loan terms, conditions, and collateral requirements prioritizing job creation and retentionFunding must be used for Acquiring machinery Ongoing or new training Training and equipment Marketing Working capital Construction or Working capital Machinery and leasehold Other commissioner- equipment acquisition improvements approved expenses that Construction or Relocation costs support job creation leasehold Working capital improvements Other commissioner- Relocation within the approved business state expenses Other commissioner- approved business related expensesPriority will be given to Economic base Economic base Economic base businesses businesses businesses Businesses creating Businesses likely to new jobs that will be maintain job growth with maintained for not less the grants than 12 consecutive monthsApplication Turnaround In most cases review and approve applications and deliver aid within 30 days after applications submission